Minister warns N494,000 minimum wage demand could destabilize economy

The Minister of Information and National Orientation, Mohammed Idris, has raised concerns about the demand for a national minimum wage of N494,000 by organized labour, stating that such an amount, cumulatively totalling N9.5 trillion, could destabilize the economy and jeopardize the welfare of over 200 million Nigerians.

Addressing a news conference in Abuja, Idris responded to the threat by organized labour to strike if their demands were not met.

He highlighted that the Federal Government’s offer of a N60,000 minimum wage, which represents a 100% increase from the 2019 wage, has already been accepted by the organized private sector, a member of the tripartite committee negotiating the wage.

“The Federal Government’s New Minimum Wage proposal amounts to a 100 percent increase on the existing minimum wage of 2019. Labour, however, wanted N494,000, which would increase by 1,547 percent on the existing wage,” Idris explained.

“The sum of N494,000 national minimum wage which Labour is seeking would cumulatively amount to a N9.5 trillion bill to the Federal Government of Nigeria. Nigerians need to understand that whereas the FG is desirous of ample remuneration for Nigerian workers, what is most critical is that President Bola Ahmed Tinubu will not encourage any action that could lead to massive job loss, especially in the private sector, who may not be able to pay the wage demanded by the organised labour,” he added.

Idris emphasized that while labour is focused on the take-home pay of about 1.2 million workers, the Federal Government is concerned with the welfare of over 200 million Nigerians, prioritizing principles of affordability, sustainability, and the overall health of the nation’s economy.

He appealed to organized labour to return to the negotiating table and embrace reasonable and realistic wage demands for their members. The minister also assured that due to the Tinubu administration’s commitment to workers’ welfare, the wage award of N35,000 for federal workers would continue until a new national minimum wage is introduced.